According to reports, the two broadcasters are aiming to submit merger terms to the OFT by the end of the month, before they both publish their annual results.
The merger could still be halted on the grounds of ITV's dominance in the advertising market. To counter this, the two companies, which own the majority of ITV licences in the UK, are likely to argue that with the growth of satellite and digital services, as well as rivalry from other traditional media such as newspapers and radio, competition is intensifying.
Carlton and Granada are also likely to point to other European markets including: France, where TF1 controls 53% of the market; Italy, where RTL has 62%; and Germany, where ProSieben has 44%.
However, the OFT is unlikely to consider Granada and Carlton's merger proposal before the new year and if, as expected, it refers the decision on to the Competition Commission, the two could be waiting until the summer of 2003 before they find out if the merger is approved.
Advertisers are concerned that if the two companies merge, they should be forced to retain two sales houses, saying that otherwise it will reduce competition in the advertising market place and send prices sky high.
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